Iran’s central bank releases draft rules on cryptocurrency

Government regulators recognise global cryptocurrencies and licensed trading but prohibit it as payment inside the country.

As of writing, it is unclear if when will the rules will be fully implemented in Iran.

The Central Bank of Iran has issued an early draft of its regulations on cryptocurrencies, reversing a previous ban, but still imposing restrictions on the use of the digital currency inside the Islamic Republic.

The bank published on its official website a regulatory framework for cryptocurrencies, which it said is aimed at organising and defining boundaries of ongoing crypto operations in the country, and allowing traders to plan for their future.

The announcement was made on the eve of the annual two-day Electronic banking and Payment Systems conference, which kicked off in Tehran on Tuesday with the theme, “blockchain revolution”.

Cryptocurrency is a digital currency, the transaction of which has no central authority and offers anonymity to those using the system, wherever they are in the world.

However, the central bank said, “Using global cryptocurrencies as methods of payment inside the country is prohibited.”

Furthermore, in an effort to prevent more value loss of the rial, it bars Iranians from holding large amounts of global cryptocurrencies in the same way they are officially prohibited from holding more than 10,000 euros.